Air traffic system overhaul stuck in holding pattern

Disagreement over how to fund it far from resolution

Published 5:30 am, Sunday, March 16, 2008

WASHINGTON — Last year, Sen. Jay Rockefeller was promising to avert "an impending crisis" by funding a replacement for the nation's outdated air-traffic control system.

Today, hope is nearly gone for the West Virginia Democrat's legislation to reauthorize the Federal Aviation Administration's budget and raise new revenues for the satellite-based Next Generation Air Transportation System, or NextGen.

Delta Air Lines chief executive Richard Anderson, speaking at an FAA event last week, expressed the airline industry's disappointment, saying Congress lacks the "political will" to act. "It doesn't look like we're going to make a lot of progress on FAA reauthorization," he said.

That means travelers face a continued risk of delays on the runway and near-collisions in the sky. Aviation experts say lawmakers may now be at least a year away from taking another stab at raising the $15 billion needed over 12 years to fully upgrade the nation's creaky radar-based system.

"Without reauthorization, the federal government fails to put forward a vision for how to modernize the air-traffic control system," said Andrew Howell, a partner with the Monument Policy Group, which represents leisure and business trade groups frustrated with flight delays. "That leaves people wondering whether there is any plan to effectively upgrade the already overburdened system."

Committees hold up vote

Rockefeller wants to pay for NextGen by imposing a $25 surcharge on each flight, regardless of the aircraft's size. That approach has the support of the Bush administration and the airline industry. In May, the

The Senate Finance Committee, which deals with taxation issues, has resisted Rockefeller's approach, and instead favors raising fuel taxes on general aviation, or flights other than military and scheduled airline service.

With the two committees at odds, the full Senate has not voted.

At a recent Senate Commerce Committee hearing, Rockefeller admitted he is stymied.

"Based upon the (general aviation) community's inability to compromise, I expect that there will not be an FAA bill this year," Rockefeller said. "We can't work it out ... because they're making all kinds of phone calls and their owners have all kinds of money."

Delta's Anderson echoed that frustration with general aviation's lobbying clout. "We should have the political will to set aside our parochial views to get to a truly fair and equitable funding system," he said.

Surcharge considered

Anderson argued that despite the imposition of a $25 surcharge, corporate jets and private planes would benefit from the speed-up in NextGen improvements. "It will have immediate paybacks for all constituents" by reducing the delays that burn up fuel and add to labor costs, he said.

The FAA supports Rockefeller's view, arguing that airlines are paying a disproportionate share of the cost of controlling airspace. The agency says that between now and 2020, this inequity will worsen as an estimated 6,000 "microjets" begin serving business customers.

General aviation groups prefer the current funding system, which relies upon a mix of fuel and ticket taxes. Because commercial jets are bigger, they use more fuel. General aviation supporters say that's fair, because traffic-control costs are being driven up by airliners crowding into major airports, not by small planes flying into lightly used airports.

While general aviation groups are frustrated with the lack of NextGen progress too, they blame commercial carriers for pushing what they consider a radical change in the tax structure of aviation.

"The current tax and financing system has accommodated the enormous growth of American aviation over the past 30 years, and it can continue to do so," they wrote. "The administration is trying to blame general aviation, the House or air traffic controllers for the lack of progress. That's grossly inaccurate and does nothing to help us move this issue forward."

Temporary budget

The House voted 267-151 last September in favor of an FAA reauthorization bill that would keep the current funding structure, while increasing the fuel taxes to fund NextGen.

But because of the stalemate in the Senate, the FAA's entire budget authorization lapsed Sept. 30 as the fiscal year ended. For several months, the FAA has been operating on a temporary budget, now set to expire June 30.

Despite the lack of congressional clarity on future funding sources, the FAA has begun building key components of the new air-traffic control system. In its budget request for fiscal 2009, which starts Oct. 1, the FAA is asking for $688 million for NextGen equipment, up from $212 million in fiscal 2008.

Still, the FAA wants Congress to approve a four-year authorization that brings budgeting stability so that it can more quickly roll out NextGen.

But it appears that such financial clarity and stability may have to wait until a new president takes office in January and appoints a new FAA chief who can help break the stalemate.